Deutsche Bank Wealth Management has introduced strategic asset allocation (SAA) ETF-based funds in Europe designed to offset volatility.
The firm said that the strategies allow clients to invest in the long-term view of the wealth management chief investment officer’s team, including structural economic shift.
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At the same time, clients can invest in funds with the help of the firm’s systematic hedging strategies and get downside protection.
The new vehicles invest in low-fee ETFs leveraging open architecture. Besides, they are designed to reduce frequent rebalancing requirements, the firm noted.
They will be initially launched in Germany, Luxembourg and Switzerland.
Plans are also on for a broader rollout in Europe as well as in Asia later.
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By GlobalDataDeutsche Bank Wealth Management global head Claudio de Sanctis believes that the timing of the launch “could not be more appropriate” due to the Covid-19 crisis.
Deutsche Bank Wealth Management head of Advisory & Sales Alessandro Caironi said: “A feature of the new SAA Funds that is extremely compelling to our clients – particularly in times like these — is the option to add systematic downside protection.
“The ‘Plus’ strategy SAA funds include our Risk Return Engineering Strategy, which has a long track record in efficiently managing downside risk while minimising the hedging costs via listed options. This is ideal right now as it allows investors to increase their exposure to growth assets while maintaining a more conservative risk profile.”
